Content articles
If you have fair credit, you can qualify for personal loans from many lenders. These loans can help you finance emergency expenses or reorganize debt. They also offer an opportunity for credit growth with consistent, on-time payments.
Before you apply, check a lender’s requirements and fees. Some require a minimum credit score, while others may perform a hard inquiry on your credit to assess your eligibility.
Credit unions
Credit unions often have less stringent lending requirements than other lenders. If you have a fair credit score (usually between 580 and 660), you may be able to obtain a personal loan from your local credit union with competitive rates. However, you must be a member of the credit union in order to apply. You may also need to meet other criteria, such as a minimum income or a checking account.
Online lenders are another good option for borrowers with fair credit. They offer quick application processes, low APRs and no prepayment penalties. Some online lenders even allow you to prequalify without a hard credit inquiry, which can help you avoid damaging your credit score with multiple inquiries.
While it’s possible to obtain a personal loan with a fair credit score, you should be aware of the risks. Some personal loans have high APRs, and you might be required to provide collateral or other guarantees in order to qualify for the loan. In addition, you should carefully consider the repayment term of your personal loan to ensure it fits comfortably within your monthly budget.
The best personal loans for fair credit will offer the lowest interest rates, fees and terms. WalletHub’s editors have compared offers from 80+ lenders and selected the top personal loans for fair credit based on a combination of our proprietary metric ratings, which include loan requirements, APRs, fees, application process, loan amounts, terms and transparency.
Online lenders
The best personal loans for fair credit offer a wide range of terms and APRs. You can find them online and at banks and credit unions. You’ll need to provide proof of income and identification. You may also have to provide your debt-to-income ratio, which helps lenders determine if you can afford the loan.
You can improve your chances of getting a personal loan by keeping your utilization low and paying off existing debt short term loan no credit check . You can lower your utilization by asking for a credit card limit increase, but that will trigger a hard inquiry on your credit report and could cause your score to drop temporarily. Alternatively, you can become an authorized user on a family member’s or partner’s credit card to build up positive payment history.
When choosing a lender, consider the minimum credit score and other requirements, as well as the loan amount and repayment period. Some lenders also offer perks such as unemployment protection or flexible payments.
At WalletHub, we’ve researched and ranked 80+ lenders that offer personal loans for people with fair credit. We’ve looked at their credit score requirements, fees, APRs, application process, loan amounts and repayment terms to identify the best options. We’ve also factored in the time it takes to fund a personal loan, as well as other factors such as customer satisfaction and transparency.
Upstart
Upstart is an AI-driven lender that focuses on the borrower’s education and income. This allows it to approve more applicants with less-than-perfect credit scores and thin credit histories. However, Upstart also offers higher APRs and loan origination fees than some competitors. Its loans are ideal for borrowers who want to rebuild their credit or consolidate debt.
Founded in April 2012, Upstart was one of the first companies to offer an online personal lending marketplace. It initially launched an Income Share Agreement product, which allowed individuals to raise funds by contracting to share a portion of their future income. In May 2014, Upstart pivoted to offering a traditional 3- and 5-year personal loan product. Upstart is featured in several CB Insights Expert Collections, including the AI 100.
Upstart’s nontraditional approach to credit assessment makes it a good choice for borrowers who struggle to get approved by lenders who focus on a person’s credit score and financial history alone. The lender can also provide next-day funding on certain applications, and it offers a number of repayment term options ranging from 36 to 84 months. In addition to its competitive rates, Upstart also offers a wide variety of borrower-friendly features, such as free prequalification and no impact on your credit when checking your rate. The company does not allow borrowers to use their personal loans for education expenses or student loan refinancing.
Upgrade
Upgrade is one of the newest personal loan lenders on the market, founded in 2016. Since its launch, it has gained a reputation as a trusted lender, known for offering multiple discounts and providing multiple loan options. The company also offers a lower minimum credit score requirement than many of its competitors, as well as the ability to apply with a cosigner. Despite these positive features, Upgrade does charge origination and late fees.
To apply for a personal loan with Upgrade, you must have a valid social security number or passport, and a bank account in the United States. You must also have a source of income, such as employment or self-employment. In addition, you must not have more than two delinquent accounts on your credit report in the past 12 months. If you do have delinquent accounts, you can try to raise your credit scores by increasing your credit utilization or by becoming an authorized user on a family member’s or friend’s card.
The best personal loans for fair credit offer low APRs and high maximum loan amounts. These loans are a great way to cover large expenses or consolidate debt. They can also help you rebuild your credit with consistent, on-time payments. However, it’s important to consider all the advantages and disadvantages before applying for a personal loan.
